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072213 EDACITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North July 22, 2013 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Daniel Stauner 1. Call to order 2. Roll call 3. Approval of May 13, 2013, EDA Minutes 4. Resolution authorizing application for the Department of, Employment and Economic Development (DEED) Redevelopment Grant by the New Hope Economic Development Authority (project no. 911) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes May 13, 2013 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 7:40 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Guy Johnson, Director of Public Works Valerie Leone, City Clerk Jeff Sargent, Community Development Specialist Steve Sondrall, City Attorney APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner Stauner, to approve the Regular Meeting Minutes of April 22, 2013. Voting in favor: Hemken, Hoffe, Lammle, Stauner; Voting against: None; Abstained: Elder; Absent: None. Motion carried IMP. PROJECT 911 President Hemken introduced for discussion EDA Item 4, Resolution Item 4 authorizing an interfund loan for advance of certain costs in connection with a tax increment financing district that may be created by the city of New Hope and the New Hope Economic Development Authority (project no. 911). Mr. Jeff Sargent, Community Development Specialist, explained that this action is similar to Item 8.1 approved by the City Council. He stated both groups must approve similar resolutions as the EDA acts as a separate entity from the City Council, and the EDA will be purchasing the property at 7940 55th Avenue North (Winnetka Learning Center site). He noted the EDA could be reimbursed for qualified expenditures through tax increments generated by a future TIF district which encompasses the property. RESOLUTION 2013 -07 Commissioner Elder introduced the following resolution and moved its Item 4 adoption "RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY (PROJECT NO. 911)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Stauner, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; and the following voted against the same: None; Abstained: None; Absent: None, whereupon the resolution was EDA Meeting Page 1 May 13, 2013 declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Lammle, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried The New Hope EDA adjourned at 7:42 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting May 13, 2013 Page 2 Resolution authorizing application for the Department of Employment and Economic Development (DEED) Redevelopment Grant by the New Hope Economic Development Authority. (Project No. 911) Requested Action Staff requests the EDA approve the resolution of support. Policy /Past Practice It is a city policy and past practice to solicit EDA approval before making application for grant funds. Background Staff has been working with Stacie Kvilvang from Ehlers to figure out how to maximize the city's return on the future sale of the Winnetka Learning Center. This application is for a Redevelopment Grant, and can used to pay for costs associated with acquisition of the property and demolition of the building. The Department of Employment and Economic Development has recently received $6 million that they will spread out over the next couple of years through the issuances of grants, etc. The grant that New Hope is applying for is a Redevelopment Grant, and we are seeking up to $700,000, with a $350,000 local match from the EDA. Since the property is proposed to be purchased with EDA funds, the local match would be met. It seems appropriate, therefore, for the EDA to be the organization pursuing the grant funds. The application deadline for the DEED Redevelopment Grant is August 1, 2013, and the proposed resolution needs to be approved prior to this deadline. Further information regarding this grant is attached for review. The grants will be awarded by DEED near the end of September. Attachment • Resolution ® Grant Application Information Motion by 9L �� — Second by I: \ RFA\ COMM DEV \ Development \0 & R - EDA App for DEED Grant 7- 22- 2013.doc City of New Hope EDA Resolution 2013- Resolution authorizing application for the Department of Employment and Economic Development (DEED) Redevelopment Grant by the New Hope Economic Development Authority (Project No. 911) BE IT RESOLVED, that the Economic Development Authority of the City of New Hope ( "EDA ") acts as the Iegal sponsor for project contained in the Redevelopment Grant Program to be submitted on August 1, 2013 and that the Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the EDA. BE IT FURTHER RESOLVED, that the EDA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED, that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED, that the EDA has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED, that upon approval of its application by the state, the EDA may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the EDA certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED, that the Mayor and the Clerk, or the Executive Director, are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 22nd day of July, 2013. Kathi Hemken, President Attest: Kirk McDonald, Executive Director FY 14 First National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101 Office of Brownfields and Redevelopment 651- 259 -7449 1 -800- 657 -3858 * * *YOUMUSTREAD THE FOLLOWING NARRATIVE TO FULLY UNDERSTAND THE APPLICATION PROCESS* PURPOSE/BACKGROUND: Because there is often no incentive for the private sector to redevelop old industrial, residential or commercial property when undeveloped parcels of land are available, public sector investment is required to induce private development of these difficult sites. Therefore, the Redevelopment Grant Program was established by the 1998 legislature to assist with complex and costly redevelopment projects that might not occur without public financial assistance. Pursuant to Minnesota Statutes §§ 116J.571 - 116J.575, the Minnesota Department of Employment and Economic Development (DEED) has the authority to award grants to assist development authorities with eligible redevelopment costs as defined below. The Redevelopment Grant Program applies only to sites where there was a past use and the need to "recycle" the land for a more productive use exists. FUNDING AVAILABILITY: Available funding amounts vary, depending on Legislative appropriation. According to Legislative requirement, if enough eligible applications are received, half of the grant money will be awarded to projects outside of the seven county metropolitan area and the other half will be awarded to projects within the seven county metropolitan area. DEADLINES/REQUIREENTS: The Redevelopment Grant Program operates on a semi - annual grant cycle. The next application deadline is August 1, 2013. Completed applications and supporting documentation (3 copies) must be received by DEED's Office of Brownfields and Redevelopment by 4:00 p.. on the due date to be considered for funding. An applicant may apply for more than one project, but an individual (separate) application must be completed for each site. NOTE: Electronic copies will not be accepted in place of paper. Please fill out the entire application. All applications must be complete upon submission in order to qualify for a grant. Missing items may disqualify you from the grant round. ELIGIBLE SITES: Redevelopment projects where there was previous development and the need to recycle the land for a more productive use exists. Sites are only eligible where there is a change from one developed use to another. ELIGIBLE APPLICANTS: Eligible applicants for this program are statutory or home rule charter cities, economic development authorities, housing and redevelopment authorities, counties, or port authorities. Redevelopment Page ii FY 14 ELIGIBLE PROGRAM COSTS: The Redevelopment Grant Program can pay up to 50 percent of the redevelopment costs for a qualifying site. "Redevelopment costs" or "costs" means the cost of land acquisition, stabilizing unstable soils when infill is required, demolition, infrastructure improvement, ponding or other environmental infrastructure and costs necessary for adaptive re -use of buildings including remedial activities. Costs incurred before the grant award date are not eligible for payment. Some examples of eligible and ineligible costs are below. Eligible Costs Acquisition Demolition Interior abatement Infrastructure Improvements (i.e., water and sewer, standard sidewalks, lights, roads, etc.) Ponding Environmental Infrastructure Ineligible Costs Construction Contingencies Building Rehabilitation Environmental Remediation (soil and ground water) Administration Streetscape Soft costs ELIGIBLE BONDING AND GENERAL FUND COSTS: Currently the program is funded with both General Funds and State Bond funds. State Bond Funds can only be used for eligible costs on publicly owned sites and the subsequent development must be publicly owned and serve a public purpose. State General Fund money can be used for eligible costs on privately owned land. Your application may include eligible private and public redevelopment costs. LOCAL MATCH REQUIREMENT: It is required that the applicant pay for at least one -half of the redevelopment costs as a local match to obtain a redevelopment grant. The match can come from any money available to the applicant. Redevelopment costs incurred up to 12 months prior to the application due date can only be included as part of the local match. These costs must meet the redevelopment costs definition (see "Eligible Program Costs" above) and must be proven to be associated with and necessary for the redevelopment. These prior costs should be identified in the Cost Analysis budget section of the application. The applicant must complete and approve the attached resolution authorizing this application and committing the local match from the applicant (see Page 13). REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current (as -is) and expected (pre - construction) value of the site are required so that DEED can determine the fair market value and any business subsidy. Both appraisals must be done by an independent appraiser using accepted appraisal methodology. In lieu of an appraisal, the applicant may use the current and projected assessed values as determined by the local assessor. Values cannot be determined in any other manner. The value of the property after the proposed development is completed is also requested. This estimate is generally based on similar development projects in the city. Redevelopment Page iii FY 14 AWARDING GRANTS: DEED will award grants to projects that provide the highest return in public benefits for the public costs incurred and meet all of the statutory requirements. In order to evaluate the applications for public benefits with respect to the costs incurred, the law specifies priorities that DEED must consider. To fulfill this requirement of reviewing applications in an objective and fair manner, the following criteria have been assigned maximum point values in order to systematically award grants. All assigned scores will be relative to scores awarded to other applications. Please note, an application must receive a minimum of 50 points in order to be eligible for funding. 1. The need for redevelopment in conjunction with contamination remediation needs. Maximum = 15 points. 2. The redevelopment project meets current tax increment financing requirements for a redevelopment district and tax increments will contribute to the project. Maximum = 25 points. 3. The redevelopment potential within the municipality. Maximum = 90 points. 4. The proximity to public transit if located in the metropolitan area. Maximum = 5 points. 5. Multi jurisdictional projects that take into account the need for affordable housing, transportation, and environmental impact. Maximum = 15 points (5 points each). Redevelopment Page iv